New Delhi, Dec. 26 -- The Jindal Steel Ltd stock is up a modest 6% over the past year, meaningfully underperforming the broader markets. The company is in a transition phase where near-term earnings pressure is colliding with a capacity expansion that is yet to fully yield results.

The immediate drag is coming from steel prices. Domestic oversupply and softer demand have squeezed realizations just as input costs have moved higher. Domestic steel prices in Q3FY26 to date are down 2-5% quarter-on-quarter, according to Antique Stock Broking.

The impact is most visible in profitability. After Ebitda per tonne fell to Rs.10,027 in Q2FY26, down 12.7% year-on-year and 36% sequentially, Nuvama Research expects a further decline in the December ...